SE Asia Stocks-Most decline; Indonesia plunges to near 4-week low

* U.S. Treasury yield gains hurt markets

* Indonesia hits more than 2-week low

* Philippine inflation data on Friday

By Niyati Shetty

Oct 4 (Reuters) - Most Southeast Asian stock markets slumped

on Thursday as positive economic data drove U.S. Treasury yields

up and raised the chances of a December rate hike, sending

jitters through the region.

Shares in Indonesia and Singapore plunged to their lowest in

nearly four weeks and one week, respectively.

A survey on the U.S. services sector showed activity raced

to a 21-year high in September, driving the U.S. Treasury yields

to their highest since mid-2011, sparking speculation that

payrolls data on Friday could also surprise.

The upbeat report will likely keep the U.S. Federal Reserve

on track to raise interest rates again in December, after hiking

rates last week for the third time this year.

However, higher U.S. yields are not favourable for emerging

markets as they tend to draw away much-needed foreign funds

while pressuring local currencies.

MSCI's broadest index of Asia-Pacific shares outside Japan

dipped 1.5 pct.

Philippine shares fell 0.8 percent, reversing gains

from the previous session, to an over one-week low. Real estate

stocks hurt the index the most, as Ayala Land and SM

Prime Holdings lost 2.6 percent and 0.6 percent,

respectively.

The country's annual inflation data, which is due on Friday,

likely continued to rise in September, keeping pressure on the

central bank to raise interest rates further.

"Rising yields abroad are going to impact our exchange rate

because of the interest parity factor. It furthers the

inflationary pressure on the Philippines because imports as a

substitute for local supplies would be more expensive for us,"

said Jose Vistan, Research Head at AB Capital Securities in

Manila.

Indonesia's benchmark index fell as much as 1.6

percent, extending loses into a fourth straight session, with

financials and consumer stocks hurting the most.

Bank Central Asia lost 1.5 percent and Unilever

Indonesia slid 2.2 percent.

The index of the country's 45 most liquid stocks

was down 1.9 percent.

Singapore's index lost as much as 1.2 percent,

weighed down by financial and industrials sectors.

Oversea-Chinese Banking Corporation slipped 1.2

percent and conglomerate Jardine Matheson Holdings

fell 2 percent.

Thai shares fell for the third straight session,

while the Malaysian index fell 0.2 percent. Vietnam

index edged up 0.2 percent.

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SOUTHEAST ASIAN STOCK MARKETS: CHANGE AS AT 0333 GMT

Change on the day

Market Current Previous close Pct Move

Singapore 3239.76 3267.4 -0.85

Bangkok 1738.87 1741.96 -0.18

Manila 7150.8 7210.87 -0.83

Jakarta 5780.935 5867.737 -1.48

Kuala Lumpur 1792.36 1796.3 -0.22

Ho Chi Minh 1022.46 1020.4 0.20

Change on year

Market Current End 2017 Pct Move

Singapore 3239.76 3402.92 -4.79

Bangkok 1738.87 1753.71 -0.85

Manila 7150.8 8558.42 -16.45

Jakarta 5780.935 6355.654 -9.04

Kuala Lumpur 1792.36 1796.81 -0.25

Ho Chi Minh 1022.46 984.24 3.88

(Reporting by Niyati Shetty; Editing by Gopakumar Warrier)